Kotak Mahindra Bank retains SB a/c rates at 5-6%

“Borrowers matter, so do savers,” tweeted Uday Kotak, Executive Vice-Chairman and Managing Director, Kotak Mahindra Bank, on Thursday even as his bank decided to keep its savings bank rate steady at 5-6 per cent.

This decision comes despite the RBI paring the repo rate (the interest rate at which banks borrow funds from the central bank to overcome short-term liquidity mismatches) from 6.25 per cent to 6 per cent and State Bank of India reducing its savings bank (SB) rate to 3.50 per cent from 4 per cent on deposits up to Rs.1 crore.

Kotak Mahindra Bank offers 5 per cent interest on SB deposits up to Rs.1 lakh; 6 per cent on deposits above Rs.1 lakh and up to Rs.5 crore; and 5.5 per cent on deposits above Rs.5 crore.

Among other private sector banks that offer higher interest rates on SB are YES Bank (6 per cent on deposits up to Rs.1 crore); IndusInd Bank (4 per cent on daily balance up to Rs.5 lakh; 5 per cent on daily balance above Rs.5 lakh and up to Rs.10 lakh; 6 per cent on daily balance above Rs.10 lakh); Lakshmi Vilas Bank (4 per cent on deposits up to Rs.1 lakh; 5 per cent on deposits above Rs.1 lakh and up to Rs.5 lakh; 6 per cent on deposits above Rs.5 lakh; 6.50 per cent on balances above Rs.10 crore).


Source : Thehindubusinessline